The role of strategic groups in understanding strategic human resource management

Purpose – This article explores how understanding the challenges faced by companies’ attempts to create competitive advantage through their human resources and HRM practices can be enhanced by insights into the concept of strategic groups within industries. Based within the international hotel industry this study identifies how strategic groups emerge in the analysis of HRM practices and approaches. It sheds light on the value of strategic groups as a way of readdressing the focus on firm and industry level analyses. Design Methodology/Approach – Senior human resource executives and their teams across eight international hotel companies (IHCs) were interviewed in corporate and regional headquarters, with observations and the collection of company documentation complementing the interviews. Findings – The findings demonstrate that strategic groups emerge from analysis of the HRM practices and strategies used to develop hotel general managers (HGMs) as strategic human resources in the international hotel industry. The value of understanding industry structures, dynamics and intermediary levels of analysis are apparent where specific industries place occupational constraints on their managerial resources and limit the range of strategies and expansion modes companies can adopt. Research limitations/implications - This study indicates that further research on strategic groups will enhance the theoretical understanding of strategic human resource management (SHRM) and specifically the forces that act to constrain the achievement of competitive advantage through human resources. A limitation of this study is the dependence on the human resource divisions’ perspectives of realising international expansion ambitions in the hotel industry. Practical implications - This study has implications for companies’ engagement with their executives’ perceptions of opportunities and threats, and suggests companies will struggle to achieve competitive advantage where such perceptions are consistent with their competitors. Originality/value - Developments in strategic human resource management have relied upon the conceptual and theoretical developments in strategic management, however, an understanding of the impact of strategic groups and their shaping of SHRM has not been previously explored

Strategic Groups and Banks’ Performance

The theory of strategic groups predicts the existence of stable groups of companies that adopt similar business strategies. The theory also predicts that groups will differ in performance and in their reaction to external shocks. We use cluster analysis to identify strategic groups in the Polish banking sector. We find stable groups in the Polish banking sector constituted after the year 2000 following the major privatisation and ownership changes connected with transition to the mostly-privately-owned banking sector in the late 90s. Using panel regression methods we show that the allocation of banks to groups is statistically significant in explaining the profitability of banks. Thus, breaking down the banks into strategic groups and allowing for the different reaction of the groups to external shocks helps in a more accurate explanation of profits of the banking sector as a whole. Therefore, a more precise ex ante assessment of the loss absorption capabilities of banks is possible, which is crucial for an analysis of banking sector stability. However, we did not find evidence of the usefulness of strategic groups in explaining the quality of bank portfolios as measured by irregular loans over total loans, which is a more direct way to assess risks to financial stability.strategic groups, financial stability, clustering, Ward algorithm, panel regression

Case studies/Strategic group analyses report of high value organic products

This report concerns the analysis of successful high-value products as case studies in each of the three meat categories: chicken, beef and pork. The main objective of our study was to identify strategic groups within the meat market, in which the new, high-value organic meat products were going to perform. The strategic group analysis also serves as a benchmark for determining the competitive situation on the Danish meat market. Hence, we analyse the market performance of the strategic groups and we describe the competition on the market, in order to identify the optimal market position for the new products

Strategic Information Acquisition in Networked Groups with "Informational Spillovers"

This paper develops a model of costly information acquisition by agents who are connected through a network. For a exogenously given network, each agent decides first on information acquisition from his neighbors and then, after processing the information acquired, takes an action. Each agent is concerned about the extent to which other agents align their actions with the underlying state. A new equilibrium notion, which is in the spirit of perfect Bayesian equilibrium, is proposed to analyze information acquisition decisions within networked groups. This equilibrium notion allows each agent to compute, when deciding about information acquisition, the extent to which changes in his information acquisition decision will affect his own perception of future expected payos. Agents anticipate and incorporate such changes in their information acquisition decisions. Both the efficient and the equilibrium information acquisition proles are characterized and the compatibility between them is related to the density of the network.Incomplete Information, Information Acquisition, Communication Networks, Informational Spillovers, Coordination

Performance differentials of agglomeration and strategic groups: a test of incubation and new venture strategy

Our paper investigates how nascent firms ‘performance is affected by strategic group membership and industrial agglomeration. Agglomeration is defined using geographical concentration while strategic groups are measured as incubated firms that belong to the industry most highly represented within an incubator. Results reveal that incubated firms in counties with higher levels of agglomeration experience a lower hazard of exit. Similarly, incubated firms that belong to a strategic group have a lower hazard of exit. However, the combined effects of agglomeration and strategic group membership based on a three-way interaction between incubation, agglomeration, and strategic group membership leads to an increased hazard of exit

Analysing Linkages between Strategy, Performance, Management Structure and Culture in the Spanish Fresh Produce Industry

This article reports the results of an industry-level study that seeks to identify empirical regularities between firm strategy, management style, organisational structure and performance in the Spanish fresh fruit and vegetable (fresh produce) industry using strategic group analysis. Groups were formed from key dimensions reflecting firms' strategic orientations. Performance levels did not differ systematically between strategic groups, but performance was found to be influenced by the alignment between entrepreneurial culture and organisational structure. A move towards greater flexibility and/or adopting an entrepreneurial style are both likely to contribute to an improvement in the overall performance of the firm.Strategic groups, Business strategy, Management structure, Fresh, Agribusiness, Crop Production/Industries,

The Strategic Threat From Suicide Terror

Suicide attacks have become more prevalent globally, gaining in strategic importance. Most are religiously motivated, with Islamic Jihadi groups networked to permit "swarming" by different groups honing in on multiple targets, then dispersing to form new swarms. The incidence and impact of suicide terrorism have not diminished despite billions of dollars spent. Military and counterinsurgency actions are tactical, not strategic responses. Long-term reliance on belligerent tactics is counterproductive. Poverty and lack of education per se are not root causes of terrorism. Rising aspirations followed by dwindling expectations, especially regarding civil liberties, are critical. There are recommendations to diminish the strategic threat.Other Topics

The Strategic Threat from Suicide Terror

Suicide attacks have become more prevalent globally, gaining in strategic importance. Most are religiously motivated, with Islamic Jihadi groups networked to permit ``swarming'' by different groups homing in on multiple targets, then dispersing to form new swarms. The incidence and impact of suicide terrorism have not diminished despite billions of dollars spent. Military and counterinsurgency actions are tactical, not strategic responses. Long-term reliance on belligerent tactics is counterproductive. Poverty and lack of education per se are not root causes of terrorism. Rising aspirations followed by dwindling expectations – especially regarding civil liberties – are critical. There are recommendations to diminish the strategic threat.

Competitor recognition by managerial perception -- a case in the UK computer industry

This paper presents a practical alternative to the clustering technique in strategic group analysis. Using managerial perception as the input, it studies the competitor recognition in the UK computer industry. An analytical framework and the concept of competitive matrix have been developed. Two hypotheses on perceived competition have also been tested. It is argued that firms formulate their competitive strategies on the basis of perceived competition rather than on the conventionally defined industry. The competitive grouping which combines the concept of strategic groups and market segmentation, provides a useful means to conduct such analysis